2015 FLEET AND VEHICLE MANAGEMENT SURVEY REPORT

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1 2015 FLEET AND VEHICLE MANAGEMENT SURVEY REPORT An in-depth analysis of GPS fleet management usage by business owners and fleet operations professionals.

2 SUMMARY How many companies use fleet management? What do today s fleet professionals think of GPS tracking technology? More than 1,100 business owners, fleet operators, and general managers participated in a recent survey regarding their biggest fleet management challenges and how they use technology to solve them. Responses indicate that telematics provides many benefits, including lower costs, improved productivity and enhanced customer service. Perhaps the most significant finding from the survey is that nearly half of all respondents started to realize a return on investment within six months of implementing a GPS fleet management system. Given these results, it s easy to see why four out of five of survey respondents expressed satisfaction with their telematics, or often known as GPS fleet management, solution. METHODOLOGY Bobit Business Media s Fleet Group research team utilized to contact audience members of Bobit Business Media s Fleet Group, regarding their fleet telematics practices and preferences. The following calculations are based on responses received from those communications. This survey represents an overall 95% confidence level with a +/- 2.9% margin of error. Table of Contents 1 WHO USES GPS FLEET MANAGEMENT? 2 ARE THEY SATISFIED WITH TELEMATICS TECHNOLOGY? 3 WHERE ARE FLEETS USING TELEMATICS? 4 WHY SOME FLEETS DON T USE GPS TECHNOLOGY 5 PRIMARY BENEFITS OF GPS FLEET MANAGEMENT 6 AREAS FOR SAVINGS WITH A FLEET MANAGEMENT SYSTEM 7 TOUGHEST FLEET MANAGEMENT CHALLENGES 8 DO TELEMATICS SOLUTIONS PAY OFF? 9 CONCLUSION

3 WHO USES GPS FLEET MANAGEMENT? More than 4 out of 10 respondents use GPS fleet management. 41% use a GPS fleet tracking system 59% do not use a GPS fleet tracking system As more and more fleets embrace a telematics solution, GPS tracking has earned a reputation as a reliable, cost-effective technology. In fact, more than 41% of those surveyed are using the technology to manage their fleets. Although the utility industry has the highest rate of adoption, telematics usage in other industries ranks close behind. GPS fleet systems adoption rate by industry: Utility 59% Public Sector Transportation Construction Environmental Services Education 43% 42% 39% 36% 34% 33% The percentage of companies using GPS tracking varies by industry, with utility, public sector and transportation having the highest adoption rates. NETWORKFLEET 2015 FLEET MANAGEMENT REPORT 1

4 ARE THEY SATISFIED WITH TELEMATICS TECHNOLOGY? Nearly 1 in 3 GPS users install the technology across all their vehicles. 3 51% of users have been with their provider for 3 years or more 30% of respondents installed a telematics system across their entire fleet 4 out of 5 fleet tracking users are satisfied, very satisfied, or extremely satisfied with their current GPS system. 80% User Satisfaction FLEET MANAGEMENT REPORT VERIZON

5 WHERE ARE FLEETS USING TELEMATICS? Telematics usage varies by scope of operations. 34% LOCAL 22% REGIONAL 13% STATE-WIDE 27% NATIONAL 4% GLOBAL The highest percent of telematics usage occurs with fleets that serve local areas. However, many fleets that operate at a regional, statewide or national level also depend on GPS technology to track their vehicles when far from their main business location. NETWORKFLEET 2015 FLEET MANAGEMENT REPORT 3

6 WHY SOME FLEETS DON T USE GPS TECHNOLOGY Top three reasons for not using telematics yet. #1 Cost But did you know... Productivity improvements and reductions in operational expenses can outweigh the cost of the GPS system. For example, nearly half of users started to realize a return on investment within six months or less. #2 Lack Of Need But did you know... Survey respondents identified maintenance as their top vehicle management challenge. Fleet management systems can provide engine diagnostic alerts and detailed vehicle usage reports to help schedule preventive maintenance and control repair and replacements costs. #3 Time But did you know... Most fleet management devices can be self-installed in a matter of minutes. Most vendors also offer nationwide certified technicians to provide fast, accurate installation of the devices FLEET MANAGEMENT REPORT VERIZON

7 PRIMARY BENEFITS OF GPS FLEET MANAGEMENT Respondents identified their top three fleet management system benefits. IMPROVED PRODUCTIVITY 76% IMPROVED ROUTING 63% IMPROVED CUSTOMER SERVICE 60% DECREASE IN FUEL CONSUMPTION 46% IMPROVED VEHICLE MAINTENANCE 41% REDUCTION IN LABOR COSTS 22% DECREASE IN ACCIDENT COSTS 15% Top three benefits as shown by users: Productivity. Other research indicates that fleet operators that focus on achieving the benefits of a fleet management system improve productivity by up to 10 to 15 percent. 1 Improved routing. Improving routing, even by a small percentage, can increase the overall productivity of your drivers and your fleet while helping to lower fuel usage and greenhouse emissions. Customer service. GPS tracking provides the tools and data fleet operators need to deliver faster, better service and improve customer satisfaction. 1 Custom Research from Frost & Sullivan LCV Telematics Market November 2013 NETWORKFLEET 2015 FLEET MANAGEMENT REPORT 5

8 AREAS FOR SAVINGS WITH A FLEET MANAGEMENT SYSTEM Where users experienced savings, and where else they can save. Telematics helps lower fuel costs by improving routes, monitoring speed and reducing idle time, and other factors that increase fuel consumption. Users estimated 5.5% average savings in fuel consumption So where else can you save? According to Frost & Sullivan: Fleet operators that focus on achieving the benefits of a fleet management system can realize significant cost savings and operational improvements. 1 Users experienced up to 10-15% increase in productivity Users saved up to minutes per driver per day in labor Users experienced up to 10-15% reduction in overtime 1 Custom Research from Frost & Sullivan LCV Telematics Market November FLEET MANAGEMENT REPORT VERIZON

9 TOUGHEST FLEET MANAGEMENT CHALLENGES Users listed the following challenges in managing their vehicles: 14% 12% 10% 10% 4% MAINTENANCE COSTS DRIVERS TIME REPAIRS From helping control maintenance and fuel costs to promoting driver safety, and more, fleets face many operational challenges. GPS fleet management systems provide the tools and information to help manage these challenges while protecting drivers and their vehicles. When properly implemented, telematics can help streamline maintenance processes, help repair and replacement expenses, enhance driver safety, lower operational costs, and provide more control over fleet performance. The top three costliest maintenance issues: #1 TIRES #2 FUEL & OIL #3 BRAKES Telematics can help reduce wear and tear on tires and brakes by providing the data needed to change driver behavior. It can lower fuel costs by reducing speeding, idling, and unnecessary driving, and by supporting better engine maintenance. NETWORKFLEET 2015 FLEET MANAGEMENT REPORT 7

10 DO TELEMATICS SOLUTIONS PAY OFF? Nearly half of all users realized a fast return on investment. 47% of users started to realize a ROI on their GPS fleet tracking system within 6 months or less A fleet management system monitors and tracks vehicle location and performance allowing you to reduce operating costs while generating productivity gains that contribute to your bottom line FLEET MANAGEMENT REPORT VERIZON

11 CONCLUSION What can we learn from this report? Based on survey results, the data underscores the many benefits of GPS fleet management, including lower costs, improved customer service, and the ability to realize a quick return on investment. If you re considering implementing this powerful fleet management tool throughout your business, keep in mind that there are many different GPS fleet management systems on the market, each with different features and capabilities. To identify the right telematics solution for your fleet, we recommend a three-step process: 1 Understand the different types of GPS vehicle tracking systems 2 Identify your fleet management goals and objectives 3 Match GPS system capabilities with your goals and objectives To receive a specialized quote, please visit NETWORKFLEET 2015 FLEET MANAGEMENT REPORT 9

12 FLEET MANAGEMENT TRANSFORMED. Verizon Networkfleet provides cost-effective fleet management solutions for government agencies, small- to medium-sized businesses, and enterprise fleets. In a world where everyone must do more with less, Networkfleet s proprietary GPS vehicle tracking and engine diagnostic technologies provide the accurate, timely data organizations need to manage their fleets more efficiently and effectively. With Networkfleet s industry-leading fleet tracking system, organizations can lower costs, boost productivity, improve driver safety, enhance customer service, and compete more effectively. Included at no additional cost is a limited lifetime warranty and emergency roadside assistance to all vehicle classes VERIZON. ALL RIGHTS RESERVED. MB /23/15

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